Another month, another decline: Manhattan’s rents stay soft

Concessions are still rampant, as median rent slides

New York /
Aug.August 09, 2018 08:20 AM

(Credit: Douglas Elliman)

The Manhattan rental market is stuck in a rut.

The median net effective rent, which accounts for concessions, fell 1.3 percent year over year in July to $3,307, according to Douglas Elliman’s latest rental report. It was the seventh decline in eight months, the report said.

“We’re at the top of the seasonal peak, or close to it, and it’s still the same story,” said Jonathan Miller, CEO of appraisal firm Miller Samuel and the author of the report. “Conditions remain soft.”

Incentives are still a fixture of the market, too — with July being the 38th consecutive month with a year-over-year rise in concession market share. During the month, 35 percent of new leases included landlord concessions, up from 26.5 percent a year earlier. While that’s helped the vacancy rate, it hasn’t kept prices from sliding, Miller said.

Median rents for smaller units, however, have been stagnant. Prices for a studio were unchanged from a year ago while ticking up just 0.4 percent for a one-bedroom unit. That shows the lower portion of the market is “moving sideways” while the upper end is softer, Miller said.

In a separate report, Citi Habitats noted that while the vacancy rate is lower than last year, it’s climbed slightly since June — “unusual for mid-summer.” That’s in part because move-in incentives are lower than they were earlier in the year, the report said.

“In response, many have postponed their apartment search entirely,” Gary Malin, president of Citi Habitats, said in a statement. “Others have chosen to focus on other locations perceived to offer good value — and where pricing is more in line with their expectations.”


Related Articles

arrow_forward_ios
Nestio's Caren Maio (Credit: Emily Assiran)
“Like TurboTax”: Nestio launches online leasing
“Like TurboTax”: Nestio launches online leasing
(Credit: iStock)
What you need to know about landlords’ challenge to New York’s rent law
What you need to know about landlords’ challenge to New York’s rent law
Among Brooklyn's priciest spots is DUMBO; pictured is the neighborhood's Main Street Park (Credit: iStock)
Why fewer Brooklyn and Queens tenants are moving
Why fewer Brooklyn and Queens tenants are moving
From left: 80 Columbus Circle with Robert Stiller and 737 Park Avenue with Hamad bin Khalifa Al Thani (Photos via Google Maps, Agnovos, State of Qatar, Godsfriendchuck/Wikimedia)
Mandarin Oriental, 737 Park units sell at substantial losses
Mandarin Oriental, 737 Park units sell at substantial losses
Steve Cohen and 151 East 158th Street (Getty, Google Maps)
Steve Cohen’s $30M condo sells above asking — after a 74% cut
Steve Cohen’s $30M condo sells above asking — after a 74% cut
Nicole Oge, Casa Blanca founders Hannah Bomze and Erez Zaurer (Getty, Casa Blanca)
Former Elliman, WeWork marketing chief joins “Bumble for homes” startup
Former Elliman, WeWork marketing chief joins “Bumble for homes” startup
RSA President Joseph Strasburg (Rent Stabilization Association)
Landlords plea for water rate freeze ahead of vote
Landlords plea for water rate freeze ahead of vote
470 Broome Street  and Rayo Withanage (Photos via Saltzman Architects, P.C. and Withanage)
From Picasso’s estate to squatting in Soho: The 470 Broome Street affair
From Picasso’s estate to squatting in Soho: The 470 Broome Street affair
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...